Escrow & Title
A Maryland broker who disburses escrow funds without authorization may face:
AA warning letter only
BLicense suspension or revocation and possible criminal charges✓ Correct
CA civil lawsuit from the buyer only
DAutomatic license renewal denial
Explanation
Unauthorized disbursement of escrow funds is a serious violation in Maryland that can result in license suspension/revocation and potential criminal liability for conversion of funds.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
State-Specific Concepts
License Law
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